Defense contractors flocked to Bangalore for the Aero India show this week, even as the Indian government confirmed that the years of plenty might be over. Defense minister A.K. Anthony confirmed that his spending would be cut in the fiscal year that starts in April, although not on “operational preparedness.” Some $1.8 billion has already been stripped from the current-year budget of $38.6 billion; depreciation of the rupee is having a significant effect on acquisitions from abroad. As a result, major planned purchases are being deferred or even abandoned. Firm contracts for the medium multi-role combat aircraft (MMRCA) program, which India is negotiating with Team Rafale for 126 jets, may not be signed until the new fiscal year begins, although Indian air force chief ACM NAK Browne said this week that it was his “highest priority.” Other big choices that are not yet under contract include the two recent helicopter wins by Boeing, for 15 CH-47I Chinooks and 22 AH-64D Apaches; the six Airbus A330MRTTs; and the second batch of six Lockheed Martin C-130Js. The Reconnaissance and Surveillance Helicopter (RSH) requirement, for which the Eurocopter AS 550 Fennec and the Kamov Ka-226T are contenders for the supply of 197 units, may be scrapped.
More In Aircraft
